ECONOMICS TODAY: THE MACRO VIEW >CUSTOM
ECONOMICS TODAY: THE MACRO VIEW >CUSTOM
19th Edition
ISBN: 9781323850831
Author: Miller
Publisher: PEARSON C
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Chapter 13, Problem 2FCT
To determine

Whether a key determinant of a nation’s stabilization coefficient value is the government’s reliance on automatic fiscal stabilizers instead of discretionary policy actions

Concept introduction:

Automatic Stabilizers: Automatic stabilizers are economic policies designed to correct economic fluctuations without any deliberate government actions. For e.g. income taxes, unemployment compensation.

Discretionary Policy actions: Deliberate policy is actions taken by government deliberately to correct economy fluctuations. Examples for this are government spending, increasing or decreasing of tax.

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